The United Nations food agency said that price indexes for vegetable oils, dairy and sugar led to declines in January, and released two new reports on food production expectations.
The FAO Food Price Index 17.9% down from all-time highachieved in March 2022 after Russia’s full-scale invasion of Ukraine.
The downtrend is partly supported by key deal signed in July to lift the ban on Ukrainian grain exports amid the ongoing war.
Tracking monthly changes in global prices of commonly traded food commodities, the latest index averaged 131.2 points in January, down 0.8% since December. fox Small discounts on its latest meat and sugar indexes.
“Good harvest progress in Thailand and favorable weather conditions in Brazil far outweigh the impact on sugar prices due to concerns about lower crop yields in India, higher gasoline prices in Brazil, supporting demand for demand for ethanol, as well as the appreciation of the Brazilian real against the dollar. US dollars,” the report said.
Simultaneously, vegetable oil prices fell 2.9%, stemming from weak global import demand for palm and soybean oils and ample export capacity for sunflower and rapeseed oils. Grain prices have been essentially unchanged since December.
Wheat production soars
International Wheat prices fall for the third month in a row. The 2.5 per cent drop in relation to Australia and Russia far exceeded production expectations. Meanwhile, global corn prices were slightly higher due to strong export demand from Brazil and concerns about dry conditions in Argentina.
holiday cheese boost
Cheese became slightly more expensive despite average milk prices being 1.4% lower than in December, due to reduced demand from top importers and increased supply from New Zealand. Currency volatility has boosted prices along with a recovery in foodservice and retail sales in Western Europe following the New Year holiday.
Global rice prices increased by 6.2% from December, enabled by tighter availability. Other factors include Strong local demand in some Asian exporting countries and exchange rate fluctuations.
New cereal prediction
in it the newest Summary of grain supply and demandFAO’s expectations international trade in cereals for the period 2022/23 to decrease by 1.7% from the previous year’s record, to 474 million tons.
Early signs point to likely areas expansion of winter wheat crop in the northern hemisphere. However, higher costs can affect the amount of fertilizer that can be applied to crops, with adverse effects on output.
Low local prices can lead to small cuts in wheat cultivation in Russialargest exporter in the world, while The severe effects of the war in Ukraine are estimated to reduce the area planted to winter wheat by 40%.
Record planting is forecast for Indiadriven by market highs and support prices, and relative High planting is expected in Pakistan like standing water from Flooding in 2022 is less of a hindrance than originally anticipated.
In the countries of the Southern Hemisphere, most of the coarse grains of 2023 are already sown. Brazil can post record corn plantingwhile those in Argentina may decrease due to low soil moisture and Weather conditions bode well for maize yield prospects in South Africathe report states.
